Ola Electric Reports a Significant Net Loss of Rs 564 Crore in Q3, Revenue Declines by 19%
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Synopsis
Ola Electric Mobility, under Bhavish Aggarwal, reported a net loss of Rs 564 crore in Q3 FY25, up 13.94% from the previous quarter. Revenue fell by 19.36% YoY, attributed to high competition and service issues. Despite challenges, the company aims to expand in the electric two-wheeler sector.
Key Takeaways
- Net loss increased to Rs 564 crore in Q3 FY25.
- Year-on-year loss up by 50% compared to Q3 FY24.
- Revenue fell by 19.36% YoY.
- EBITDA loss rose to Rs 460 crore.
- Focus remains on expanding electric two-wheeler market presence.
Mumbai, Feb 7 (NationPress) Ola Electric Mobility, led by Bhavish Aggarwal, disclosed a substantial net loss of Rs 564 crore for the third quarter (Q3 FY25), reflecting a rise of 13.94 percent from the net loss of Rs 495 crore reported in the previous quarter (Q2 FY25).
On a year-on-year (YoY) basis, the net loss escalated from Rs 376 crore in the same quarter last year (Q3 FY24), marking a significant 50 percent increase.
In a filing to the stock exchange, the company cited heightened competition and service difficulties as reasons for the increased losses during the quarter.
The company’s operational revenue witnessed a decline of 19.36 percent YoY, dropping to Rs 1,045 crore in Q3 from Rs 1,296 crore in the corresponding period last year.
On the operational front, the company’s EBITDA loss surged to Rs 460 crore in the December quarter, compared to a loss of Rs 301 crore in the same quarter of the previous fiscal year.
The consolidated EBITDA, excluding exceptional costs such as warranty and one-time employee-related expenses, was recorded at (-) 29.2 percent in Q3, compared to (-) 19.4 percent in Q2.
Likewise, the auto segment’s EBITDA, after excluding exceptional costs, fell to -18.5 percent from -12.8 percent in Q2.
The company stated, “October experienced strong performance driven by festival sales; however, the overall quarter was weak due to high competitive intensity and service challenges.”
The electric mobility company mentioned that service issues have been addressed, and with network expansion, it has improved its market share and margins.
Despite financial hurdles, the company remains committed to enhancing its presence in the electric two-wheeler sector, as noted in its filing.
In Q2 FY25, the electric two-wheeler firm’s revenue decreased by 26.1 percent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore in the first quarter of FY25.
Following the earnings report, Ola Electric’s stock further declined to Rs 69.43 per share, down by 3.35 percent.
